DUE: 4/9/2018

During May, Chung Refrigerating Company completed the following transactions.

May 1 Received merchandise from Costello Company, invoice dated April 29, terms 2/10, n/30, FOB shipping point, $2,500.

2 Issued check no. 230 to Roundfield Realtors fro May rent, $2,000.

3 Received merchandise from Vranes Manufacturing, invoice dated May 1, terms

2/10, n/30, FOB shipping point, $5,400.

5 Issued check no. 231 to Dukes Company for repairs, $560.

6 Received credit memorandum pertaining to May 3 shipment from Vranes Manufacturing for return of unsatisfactory merchandise, $400.

7 Issued check no. 232 to Orta Company for freight charges on May 1 and May 3 shipments, $184.

8 Sold merchandise to C. Share, terms 1/10, n/30, invoice no. 725, $1,000.

9 Issued check no. 233 to Costello Company in full payment less discount.

10 Sold merchandise to R. Bell, terms 1/10, n/30, invoice no. 762, $1,250.

11 Issued check no. 234 to Vranes Manufacturing for balance of account less discount.

12 Purchased advertising on credit from WXYR, terms n/20, $450.

14 Issued credit memorandum to R. Bell for merchandise returned, $50.

15 Cash sales for the first half of the month, $9,670. (To shorten this problem, cash sales are recorded only twice a month instead of daily, as they would be in actual practice.)

16 Sold merchandise to L. Stokes, terms 1/10, n/30, invoice no. 727, $700.

17 Received check from C. Share for May 8 sale less discount.

19 Received check from R. Bell for balance of account less discount.

20 Received merchandise from Costello Company, invoice dated May 19, terms 2/10, n/30, FOB shipping point, $2,800.

21 Received from Noh Company freight bill on merchandise purchased, terms n/5, $570.

22 Issued check no. 235 for advertising purchase of May 12.

23 Received merchandise from Vranes Manufacturing, invoice dated May 22, terms 2/10, n/30, FOB shipping point, $3,600.

24 Issued check no. 236 for freight charge of May 21.

26 Sold merchandise to C. Share, terms 1/10, n/30, invoice no. 728, $800

27 Received credit memorandum from Vranes Manufacturing for defective merchandise received May 23, $300.

28 Issued check no. 237 to Espinoza Company for purchase of office equipment, $350.

29 Issued check no. 238 to Costello Company for half of May purchase less discount.

30 Received check in full from L. Stokes, discount not allowed.

31 Cash sales for the last half of month, $11,560.

31 Issued check no. 239, payable to Payroll for monthly sales salaries, $4,300.

REQUIRED 1. Prepare a sales journal, a multicolumn purchase journal, a cash receipts journal, a cash payments journal, and a general journal for Chung Refrigerating Company similar to the ones illustrated in the book. Use Page 1 for all journal references.

2. Open the following general ledger accounts: Cash (111); Accounts Receivable (112); Office Equipment (141); Accounts Payable (211); Sales (411), Sales Discounts (412), Sales Returns and Allowances (413), Purchases (511), Purchase Discounts (512), Purchases Returns and Allowances (513), Freight In (514), Sales Salaries Expense (521), Advertising Expense (522), Rent Expense (531), and Repairs Expense (532).

3 . Open accounts receivable subsidiary ledger accounts for R. Bell, C. Share, and L. Stokes

B 4. Open accounts payable subsidiary ledger accounts for Costello Company, Noh

Company, Vranes Manufacturing, and WXYR.

5. Enter the transactions in the journals and post as appropriate.

6. Foot and cross foot the journals, and make the end-of-month postings.

7. Prepare a trial balance of the accounts used in this problem and prove the control

balances of Accounts Receivable and Accounts Payable by preparing schedules of

accounts receivable and accounts payable.